Health Insurance Articles
About Catastrophic Health Insurance
2011-10-12
Health insurance costs have gotten so high that many people have chosen to forgo obtaining a policy in order to save money. But this also means that those without insurance can't go to the doctor when they're sick unless absolutely necessary because the costs are so high and many doctors won't see patients without health insurance. Other people have gotten basic insurance coverage in order to pay lower monthly premiums. However, those premiums may still be quite high for individuals that earn low wages. That is where catastrophic health insurance comes in. These types of plans were created with the low wage earner and down economy in mind. For those that still want to have a health insurance plan but that don't want to pay astronomical rates or that don't visit the doctor very often, catastrophic health insurance plans may just be the answer they've been looking for.
High Deductible Health Plans
Catastrophic health insurance is often referred to as the high deductible health plan because that is essentially what it is. Policy holders don't get the same insurance coverage they would if they were to get a traditional plan. However, costs are much lower for catastrophic plans than with traditional plans. For these plans, the monthly premiums are fairly low but only because the deductibles are much higher than standard plans. What this means for the average person is that doctor visits and even prescription medicines will come at a much higher price. Essentially, a person with one of these plans will pay more out-of-pocket than someone with a traditional plan but, if they don't see the doctor much anyway, it's a great idea. If people are healthy, they save money and if something big (catastrophic) happens, they're still covered.
Catastrophic health insurance plans come in two varieties: comprehensive and supplemental. A comprehensive plan is a stand-alone plan and offers the same insurance coverage as typical health insurance plans. People on these plans need to reach a high deductible before the insurance company will provide coverage, but it helps in cases when they need to go to the ER or be in an ambulance. This is a great option if one believes he won't be getting sick much throughout the year.
Supplemental catastrophic insurance works as a supplement to a regular policy. It is like having an additional policy that covers other areas that typical policies do not. Things like psychiatric care, nursing care and medical appliances are covered under a supplemental policy while regular insurance policies cover the rest.
If a person wants to ensure they're covered in an emergency, this is the plan to get.
